This has been an active summer and its not over yet. The buying activity has picked up considerably as buyers of all kinds have come into the area seeking to scoop up bargains. There have been a large number of forclosures in the area and investors and other buyers have moved in to scoop them up for rentals, vacation homes, and great deals on primary residences. Buyers who were turned away two years ago by the high prices in the area have come back to shop the steeply discounted prices compared to 2006-2007. The median price of homes in Bend and the average price of homes is now down over 38% from the peak. Bend has been hit hard by the recession but this has provided a spectacular buying opportunity for many people who have loved the area but been reluctant to buy. I have seen whole subdivisions that have been forclosed on by the bank and a dozen new houses put on the market and all sold in two months. We are also seeing multiple bids on some properties now that are great deals attracting several buyers in a short time.
As I have said in other blogs, Bend is still Bend, one of the few areas with two recreational seasons. We have all the wonderful rivers, lakes, golf courses, and mountains to visit in the summer and Mt. Bachelor and the Cascades for winter recreation. This great playground hasn't changed, it just got vastly less expensive.
From the charts I access on MLS we can now see that the sales numbers have bottomed and turned up. There are still good inventories in all price ranges but buyers can not undercut every price without losing some properties to other buyers. Sellers have woken up to the pricing realities but they are still often shocked to find their sales fall through when their home does not appraise for what the sale was negotiated for. This can cause the banks, if lending on the properties, to not lend enough to complete the sale. Also the buyers are reluctant to make up the difference if the house does not appraise for what they agreed to pay on contract. Sellers need to be prepared that their house may not appraise for the value they want. Lenders are wanting 20% down and prefer 25% although some better loans are available.
All of this still says it is a buyer's market with prices very depressed, spectacular values, good inventory, and good rates available. But the bottom is in the past and the charts have all turned up. Don't be the last to board this train to values if you are interested in Bend real estate. I have seen some luxury properties that were on the market a year ago for $1.1M now selling for $600 or less. This is an absolute fact that there are great bargains on beautiful large houses with great amenities and views as will as starter and potential rental houses. This particular market will not last forever so don't miss it. Call me and I will search for properties that fit your particular needs and criteria. If you are coming from CA, WA, or other states you will be amazed at what money buys here now.
Joe